Does Circle K have any restrictions on assigning the Motor Fuel Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other agreement* | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 15.1; Section 19(a) of Motor Fuel Agreement ; Section 8(c) of Branding Agreement | Convenience Store Franchise Agreement: No restriction on our right to assign. Motor Fuel Agreement: No restriction on our right to assign, but must provide 10 days' advance written notice. Branding Agreement: No restriction on our right to assign, but must provide 10 days' advance written notice. |
| k. "Transfer" by franchisee - defined | Section 15.2; Section 19(a) of Motor Fuel Agreement; Section 8(b) of Branding Agreement | Convenience Store Franchise Agreement: Includes transfer of interest in Convenience Store Franchise Agreement or assets or ownership change of more than 50%, or change in effective control as defined by Franchisor. Motor Fuel Agreement: includes transfer of a 25% or greater interest in franchisee and/or Motor Fuel Agreement. Branding Agreement: includes a transfer of a 25% or greater interest in franchisee and/or Branding Agreement. |
| l. Franchisor approval of transfer by franchisee | Section 15.2; Section 3.14 of Software Agreement; Section 19(a) of Motor Fuel Agreement; Section 8(a) of Branding Agreement | Convenience Store Franchise Agreement: We have the right to approve all transfers but will not unreasonably withhold approval. Software Agreement: Any transfer by you is subject to our prior written consent. Motor Fuel Agreement: we have the right to approve all transfers but will not unreasonably withhold approval. Branding Agreement: we have the right to approve all transfers but will not unreasonably withhold approval. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 79–85)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K has the right to approve all transfers of the Motor Fuel Agreement, but will not unreasonably withhold approval. A transfer includes a transfer of a 25% or greater interest in the franchisee and/or Motor Fuel Agreement.
This means that if a franchisee wishes to transfer their Motor Fuel Agreement to another party, they must first obtain approval from Circle K. However, Circle K cannot arbitrarily deny such a transfer. They must have a reasonable basis for doing so. This protects the franchisee from being unfairly prevented from selling their business or otherwise transferring the Motor Fuel Agreement.
The FDD also specifies that Circle K has no restrictions on their right to assign the Motor Fuel Agreement, but they must provide 10 days' advance written notice. This means Circle K can transfer the agreement to another party without needing the franchisee's approval. However, they are obligated to inform the franchisee of this transfer in writing at least 10 days in advance. This allows the franchisee to prepare for any changes that may result from the assignment.